Share
Explore BrainMass

# TCO A, B H - Accounting Problem

(TCO H) Al and Amy file a joint return for the 2007 tax year. Their adjusted gross income is \$80,000. They had net investment income of \$9,000. In 2007, they had the following interest expenses: Personal credit card interest \$4,000;
Home mortgage interest \$8,000; and
Investment interest (on loans used to buy stocks) \$10,000.

What is Al and Amy's interest deduction for the 2007 tax year? ( 1- \$17,000
2- \$8,000
3- \$12,000
4- 18,000

(TCO B) Charitable contribution deductions for Capital Gains Property made by individuals without a reduction for long-term capital gains to public charities are limited to:
1- 50% of AGI
2- 40% of AGI
3- 30% of AGI
4- 20% of AGI

(TCO A) The following taxes were paid by Tim: Real estate taxes on his home: \$1,000; State income taxes: \$900; and State gasoline tax (personal use of automobile): \$150.

In itemizing his deductions, what is the amount that Tim may claim as a deduction for taxes?
1- \$2,000
2- \$3,050
3- \$0
4- \$1,900

#### Solution Summary

The solution computes accounting problem of Questions TCO A, TCO B & TCO H.

\$2.19